“The Role of Mobile Marketing Communications in Media Strategy”

“The role of mobile marketing communications in media strategy”

AUTHORS Jonna Holland

ARTICLE INFO Jonna Holland (2010). The role of mobile marketing communications in media strategy. Innovative Marketing , 6(2)

RELEASED ON Wednesday, 09 June 2010

JOURNAL "Innovative Marketing "

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businessperspectives.org Innovative Marketing, Volume 6, Issue 2, 2010

Jonna Holland (USA) The role of mobile marketing communications in media strategy Abstract This analysis reviews the factors that make mobile marketing communications a unique media choice with tremendous potential for marketers. Given that media planning must be driven by sound business strategy rather than the novel potential of the technology, this is an important topic of inquiry. When and with what kinds of marketing messages should mobile marketing communications be used to reach consumers? To begin answering these questions first the definitional issues relating to the terms mobile marketing communications are addressed. The relevant literature on the unique characteristics of mobile marketing communications and media planning is then reviewed. Five characteristics of mobile marketing communications are identified as key considerations for decision-making: Ubiquity, Immediacy, Location sensitivity, Personalization, and Consumer controlled interactivity. Finally, recommendations for marketing managers, as well as directions for future research will be presented. Keywords: mobile advertising, mobile marketing, advertising strategy, promotions mix, integrated marketing communication, media planning.

Introduction© innovative examples from companies such as MTV (consumers are able to download music to their What could be more attractive to marketers than a mobile from European Music Awards winners), the medium with the power to reach over eighty-two BBC (football fans can send their opinions on percent of all Americans wherever they are and most football via video messages from their phones), any hour of the day (Synovate, 2009)? Furthermore, Harper Collins Publishers (consumers can download what medium could claim that more than three book chapters to their phones), and the Backstreet quarters of messages sent are read by seventy-four Boys (fans can send and receive SMS messages percent of audience members, and of those, seventy- from the band during their concert tour). seven percent read the messages as soon as they are received (Barwise and Strong, 2002)? Not only were Although these examples represent exciting and they read, but sixty-nine percent of audience creative opportunities for marketers, are they being members recalled more than half of the brands that driven by the novel potential of the technology or had been advertised (Barwise and Strong, 2002). sound business strategy? Research is needed to These numbers represent the startling potential of assist managers in determining how mobile media mobile marketing communications. can help reach marketing communications goals and objectives. When and with what kinds of marketing Although many marketers are taking note of the messages should mobile marketing communications potential of this new advertising medium, ad be used? What are the unique characteristics of this spending currently lags the growth in mobile use. medium that marketers should consider to develop Recent analysis from ABI Research (2010) reports communications strategies? The current analysis is that globally, over one billion new mobile handsets an effort to answer these questions. In so doing, first were shipped in 2009, with another 1.2 billion the definitional issues that have posed barriers to projected to ship in 2010. With US Mobile ad dialog on this topic will be addressed. Next, the spending in 2009 estimated at $416 million and relevant literature on the unique characteristics of projected to grow to $1.56 billion by 2013 mobile marketing communications will be reviewed. (eMarketer.com, 2009), it is clear that strategies This will be followed by a review and discussion of must be developed to optimize investment in this media planning issues. Finally, recommendations for new channel. marketing managers, as well as directions for future As is often the case with rapidly evolving new research will be presented. technologies, practice advances before theory is 1. Definitions developed. Those companies predisposed to innovation and risk taking will be willing to launch One issue that plagues all new areas of research is marketing communications campaigns using mobile that of terminology. Mobile marketing channels with the hope of gaining first mover communications is no exception. Tähtinen (2006) advantages into a novel and as yet uncluttered provides an excellent review of the use of the terms medium. The business press (see, for example, attempting to designate this activity. Her review www.adverblog.com) abounds with reports of indicates that although most practitioners (primarily represented by communications from the Mobile Marketing Association) use the term ‘mobile © Jonna Holland, 2010. marketing’, they are primarily referring to only the

18 Innovative Marketing, Volume 6, Issue 2, 2010 communications aspects of marketing. Some the unique qualities of this medium. Non-traditional academics have also advocated the use of the term media and contexts can be used to enhance mobile marketing (for example, see the review in communication effectiveness (Dahlen and Edenius, Leppäniemi, Sinisalo and Karjaluoto, 2006). 2007). If mobile is evaluated on the same basis as However, using the term mobile marketing to other communication channels, the most powerful describe actions that are primarily communications aspects of this medium may be missed. creates the potential for confusion. For all the reasons outlined above, this paper will Tähtinen’s (2006) review demonstrated that most follow the lead of Tähtinen (2006) in using the term academic researchers use the term ‘mobile mobile marketing communication to refer to the advertising’ for the concept of marketing concept of interest. However, a literature search on communications over mobile devices. The definition this term finds that there are still a wide variety of that is commonly accepted in research is that activities to which this may be applied. For the advertising is “a paid, mediated form of reader who is not familiar with the differences, the communication from an identifiable source, distinctions will briefly be reviewed here. The scope designed to persuade the receiver to take some of this analysis does not include, for example, action, now or in the future” (Richards and Curran, marketing communications promoting mobile 2002). The authors provide a footnote to accompany services or mobile technologies (handsets, or billing this definition stating that “mediated communication software, for example). Rather, this analysis will is that which is conveyed to an audience through focus on the most basic level of mobile marketing print, electronics or any method other than direct communications: SMS (Short Message Service) person-person communication” (p. 74). Clearly, the which is more commonly referred to as text intent is to replace the prior ‘mass media’ criterion messaging. Most all mobile phones sold today have with something that allows for new media channels the capability to receive text messages, and in fact such as email and mobile phones. the number of texts sent via mobile phones surpassed the number of voice calls annually in However, as pointed out by Tähtinen’s (2006) 2008. In the US, the average mobile user sends or review, even this modified definition of advertising receives 357 text messages per month, compared does not seem to incorporate the essential elements to 204 phone calls. The number of text messages of mobile marketing communications; namely its is up 450% compared to 2006 figures ( Nielsen personal nature, time and location sensitivity and Mobile Research, 2008a). The same study showed interactivity. Instead, she proposes the terms m- that the average teen in the US sends or receives adcom or mobile marketing communication. These 1,742 text messages compared to 231 mobile terms have the advantage of being broad enough to phone calls per month. include other promotional and marketing strategies beyond the traditional limits of advertising, which is Marketers who choose to send text messages to important given the full range of communications customers must first recruit customers’ permission abilities offered by the emerging technology. and mobile phone numbers through some sort of a campaign, contest, or other sign-up incentive. The Another important reason for naming and defining messages that are then sent are limited to 160 this new activity is that consumers are likely to characters, (no images), but may be replied to, receive communication through new media such as saved, or forwarded, which leads to their potential to through mobile phones quite differently from the “go viral” through consumer to consumer way they receive traditional advertising messages communications. (Dahlen and Edenius, 2007). A 2009 study of 8,000 mobile phone owners living in urban areas of A similar, but slightly more advanced technology is Canada, Denmark, France, Malaysia, the MMS (Multimedia Messaging Service) which Netherlands, the Philippines, Russia, Singapore, allows for the sending and receiving of graphics, Taiwan, the UK and the US found that "people tend photos, video and audio clips. This service to classify the mobile phone differently [from] enhances the creative potential of the marketing mainstream media like television, radio, print, communications, but it is not available on all outdoor and even the internet. Most people do not mobile phones. think of phones as a media platform at all” The form of mobile marketing communications that (Synovate, 2009). garners the most discussion and certainly holds the Furthermore, it is likely that companies who most promise for a full range of marketing develop strategies for using mobile devices as an interactions is mobile internet access. This “advertising channel” could miss the opportunities technology is only available to subscribers who to develop communication strategies that build on have both the appropriate technology on their

19 Innovative Marketing, Volume 6, Issue 2, 2010 mobile phones (i.e. smart phones) and either television programs in the US and UK found that subscribe or pay for usage through the mobile younger, higher SES consumers were the most service provider. While not all websites offer full willing to accept SMS direct advertising and functionality for those accessing the site on a mobile respond favorably to related promotions (Trappey device, the mobile browsing experience can be and Woodside, 2005). compared to internet access through a computer. On the other hand, surveys of consumer attitudes Consumers are exposed to a full range of internet reveal conflicting information. Using a variety of advertising, from banners, to pop-ups, to the scenarios, Carroll, Barnes, Scornavacca and Fletcher company sites in general. Most academic and (2007) found that over fifty percent of respondents practitioner articles on mobile marketing rated most forms of mobile marketing communications are focused on this level of communications as “unacceptable”. Similarly, technology. However, it seems that this level of according to surveys conducted by Forrester research interest may be misaligned with practice. Research and eMarketer.com (2007), 79% of US Most mobile US and Global subscribers do not have consumers find the idea of mobile ads annoying, access to the internet through their mobile devices and only 3% say they trust text ads on mobile (Synovate, 2009). For example, Nielsen Mobile phones. However, Forrester’s analysis of campaigns Research (2008b) found that only 37% of US that delivered valuable information or content found mobile subscribers had access to the mobile internet consumers receptive. Unfortunately, there are few and of those, less than half were active users of such campaigns reaching consumers. According to mobile internet services (meaning accessed the M:Metrics (2007) only about 7% of US mobile services at least once on a monthly basis). phone users have responded to short message code Based on the current state of development, this advertising, and only 2.5% have participated in paper will focus on the most basic form of mobile games or contests. marketing communications, SMS (text messaging). Worldwide, 40% of mobile users actively access The following sections will first review services such as messaging, games and news content representative literature to shed light on what (Pringle, 2005). In a 2001 study of over 3,300 characteristics of this communication medium are people in eleven key global markets, 88% of the most important to understand its use and respondents were willing to receive mobile development. This will be followed by a review of advertising in the form of electronic coupons for literature that guides media channel selection to see local retailers (HPI, 2002). However, not all mobile how mobile marketing communication should fit communications might be seen as delivering such a into strategic media decisions. tangible value, therefore these results may not be 2. Literature review generalizable to other forms of mobile advertising. 2.1. Mobile marketing. There is considerable Obviously what’s needed is a conceptual framework disagreement as to how willing consumers are to from which to interpret these diverse findings. receive marketing communications via their mobile Leppäniemi and Karjaluoto (2005) attempted to do devices. The study in the opening example (Barwise just that. They examined the existing literature for and Strong, 2002) found evidence that mobile could factors influencing consumers’ willingness to accept be an extremely effective way of reaching mobile advertising. They posit that consumer consumers and that their response could be quite willingness to accept mobile advertising will be positive to marketers’ text messages. Their study dependent on 1) the development of user-friendly looked at consumers in the UK who were given an technology, 2) the increasing prevalence of mobile incentive to participate in the study ($7 each) and marketing, 3) the successful personalization of were compensated (7 cents) per text message messages (user profiles, time and location sensitive received, up to three messages per day. This is information), 4) the development of regulatory substantiated by studies reviewed by Lewis (2001) guarantees of privacy and anti-spamming, along that found US consumers were receptive to mobile with 5) the value in the ads themselves (relevant advertising if it offset the cost of other mobile information, rewards, from trusted organizations, services such as e-mail and news services. A with receiver controls). Although this model leads common finding is that the prerequisite for to some testable hypotheses, many of which have consumer acceptance of this medium is consumer face validity, this model has not been tested. control and permission (Carroll, Barnes, Furthermore, there appear to be some individual Scornavacca, and Fletcher, 2007; Peters, Amato, and difference factors omitted, such as those relating Hollenbeck, 2007; Tsang, Ho, and Liang, 2004). to the consumer’s involvement level with the Analysis of databases of actual consumer responses product or service and experience with to SMS direct marketing campaigns related to technology. There are also important

20 Innovative Marketing, Volume 6, Issue 2, 2010 characteristics of the medium that are overlooked, Another study included both of these factors and for example, the interactivity and viral potential found that both, along with consumer involvement, of mobile marketing. incentive level, appeal of the message and attitude towards SMS advertising influenced purchase Scharl, Dickinger and Murphy (2005) also intentions (Drossos, Giaglis and Lekakos, 2007). developed a conceptual model of the success factors However, their experimental design with a student of text messaging. ‘Success Factors’ are posited to sample had several limitations. Yang (2007) used be in the area of either message issues (relevant, the Extended Technology Acceptance Model as entertaining, creative content, personalization, the basis for a survey (also among students) and consumer control) or media issues (overcoming found that attitudes towards mobile advertising device incompatibility and limitations, on-time and social norms significantly influenced delivery, product fit, media cost). These factors intentions to use mobile advertising. Uses and influence ‘Consumer Beliefs’, which based on Gratifications Theory was the basis for another consumer behavior and the acceptance of information study that found that consumers would use mobile technology literatures, are divided into three factors: marketing communications to stay overall attitudes, perceived usefulness and ease of knowledgeable, build relationships with use, and peer influence. Finally, the success factors companies, and feel connected to the “in-group” and attitudinal factors influence what the model calls (Peters, Amato, and Hollenbeck, 2007). ‘Success Measures’, conceptualized as Consumer Attention, which leads to Consumer Intention, which There are numerous other studies, many of which leads to Consumer Behavior. Although this article are summarized or reviewed within the above does not develop or test hypotheses, the mentioned work, that evaluate factors that lead to comprehensive review of existing empirical studies success or acceptance of mobile marketing. The combined with content analysis of existing practices research described above, however, represents a and interviews with industry experts provides a firm sampling of the most comprehensive studies that foundation for the development of this conceptual were designed to develop conceptual frameworks model. However, the model does not help us to for predicting the acceptance of mobile marketing understand the unique advantages of the mobile communications. It appears that a degree of medium or how it fits into the overall integrated agreement is emerging regarding the key factors marketing communications plan. influencing consumer acceptance of mobile as a media channel. In general, the evidence indicates Bauer et al. (2005) looked at consumer acceptance that if marketers can build trust through adequate of mobile marketing. Unlike the previous examples, permission-based systems and design messages that the framework they developed is based on an on- meet consumers’ needs for utility and/or line survey of 1,028 subjects. Results showed that entertainment, it appears that consumers may accept high levels of consumer innovativeness led to this new medium. higher knowledge levels about mobile communications, which, along with a positive However, many companies are not waiting for the attitude toward advertising led to more positive above mentioned evidence or models to be further attitudes towards mobile marketing. Perceived risk tested or developed. Many media planners are was negatively related to attitude toward mobile already allocating budget and implementing mobile marketing. And the final construct, perceived marketing communications programs. For these utility, comprised of information, entertainment decision-makers, we now turn to a review of what and social utility factors, was determined to be the literature or guidelines are available to answer the central driver of attitude towards mobile central question of this discussion: When and with marketing. Ultimately, attitude toward mobile what kinds of marketing messages should mobile marketing and perception of social norms influence marketing communications be used to reach the intention to adopt mobile marketing. consumers? Although this study takes us a long way down the 2.2. Media selection and strategy. The goal of path to understanding consumer attitudes towards Integrated Marketing Communications is to utilize mobile marketing, as the authors explain, it doesn’t the best combination of available communications help us much in understanding how to segment or tools in a coordinated strategy to achieve the when to use this form of communication to reach organization’s communication objectives. A major consumers (Bauer et al., 2005). In fact, their study part of this strategy is media planning. It might be does not address the unique characteristics of useful to examine how media alternatives are mobile marketing such as mobility, interactivity or evaluated to develop an understanding of how mobile personalization. marketing communications could fit into the mix.

21 Innovative Marketing, Volume 6, Issue 2, 2010 Coulter and Sarkis (2005) developed and tested a to read email? Attitude toward advertising was comprehensive model for evaluation and selection another factor that does not seem to differentiate of media alternatives. They first conducted a review between mobile and other media channels. of existing literature to determine the factors that Similarly, perceived risk does not seem to help; managers consider when weighing the media would the consumer perceive higher levels of risk in choices. They then tested the validity of these receiving a text from a marketer as compared to the factors through an expert panel review. The same information in an email? And what about following five factors emerged from their study: perceived utility or entertainment? It’s likely that Quality, Time, Flexibility, Coverage, and Cost, with this would be a key driver for consumer response to between two and five sub-factors for each (16 total). a message through either medium. The factors The goal of their study was to develop and test a influencing consumers’ acceptance of mobile media selection optimization decision aid. Although marketing communications do not seem to be useful they did not examine mobile marketing in their in providing guidance on which communications study, they did include Internet as representative of channel should be used. the new digital media. The factors and decision Although they may clearly differ from traditional system they developed proved to be useful for media, many of the advantages of mobile as a evaluating media options. medium seem to be similar to those of internet Most media planners do not have access to such a channels (email, blogs, websites, etc.). Both have decision system and rely primarily on analysis of the potential to be highly interactive, personalized, audience demographics compared to target market combining user content, video, music, etc. Both demographics to make media buying decisions have the potential disadvantages of being perceived (D’Amico, 1999). In addition to cost and time as complex, high risk, with considerable security constraints, consideration is also given to the concerns. Therefore, what guidance can be provided characteristics of the message (does it need visuals, to media planners about when to use mobile will consumers want to refer back to the copy?), the marketing communications? In the absence of a characteristics of the product (high/low sophisticated model such as that proposed by involvement) and match these to the unique Coulter and Sarkis (2005), what kind of “matching” characteristics of each medium and the marketing can be evaluated between the unique characteristics communications objective (Russell and Lane, 2002). of the medium and the characteristics of the target In either decision-making scenario, an audience? The obvious key characteristic is that understanding of the advantages and disadvantages mobile is mobile. This characteristic not only makes of each media option is essential. Therefore the mobile unique, but also is the key to its value. If unique characteristics of mobile as a communication marketers can capitalize on this characteristic and channel should be delineated. create value for consumers, mobile marketing 2.3. Advantages and disadvantages of the mobile communications can be successful. channel. What are the key issues that would lead a 3. Mobile media considerations media planner to select mobile media for the communications strategy? The mobile channel What does it mean to be mobile? What are the allows a company to communicate to customers in a impacts on marketing communications? What are unique and engaging way (Sinisalo and Karjaluoto, the strategy implications of the unique characteristic 2007). As discussed, most research has focused on of mobility? delineating the variables that would predict the Being able to reach consumers in real time, consumer’s acceptance of this channel, not on how wherever they are, at any time, any place, with to use it once the conditions for acceptance are messages that are relevant to them based on time, present. If a manager is deciding between mobile place, and space leads us to the following five key and another similar communications channel, such implications: as email, for example, the identified variables may not be helpful. Under what conditions would the i Ubiquity: People carry their cell phones consumer be more likely to open and read an everywhere they go, all the time. No other form incoming text message from a marketer as of media can be accessed by consumers in so compared to an incoming email message? What many different places. factors might differentiate the consumer’s response i Immediacy: Messages can be sent in response to to one over the other? Innovativeness was shown to events and opportunities in real time. People be a determining factor in consumer acceptance of respond to mobile messages (both voice and mobile advertising. Does the consumer have to be text) nearly immediately. more innovative to learn to read text messages than i Location sensitivity: messages can be sent to

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consumers that relate specifically to where they 4. Future research and managerial implications are, or where they’re going. Although a significant number of studies have i Personalization: messages can be targeted to begun to define the conditions under which individual consumers based on their interests, consumers will accept mobile marketing needs, preferences (and as mentioned above, communications, little has been done to examine the location in time). Unlike communication impacts of the unique characteristics of the mobile through other media, mobile phones are channel on communication. As mentioned earlier, personal, not shared like land lines, television preliminary evidence indicates that consumers don’t sets, or computers. see mobile as a media channel, but rather as a i Consumer controlled interactivity: messages can communication channel. Consumers who give be two-way, multi-way (conferencing and viral permission to companies to send them messages effects), co-created, and co-experienced. This may perceive these messages quite differently from builds on the characteristics mentioned above, advertising. Research into this area could lead to a as all this can be in real time, anytime, new understanding of communication. anywhere. This leads to another area for future research: Taken as a whole, these characteristics not only fusion. Fusion refers to the merging or blending of make mobile unique, but also are key to creating two or more things. Beyond the usage of a variety of value for consumers. The media selection analysis tools in the promotions mix, fusion actually blurs can be stated as follows: If these unique aspects of the lines between forms of marketing mobile media can be leveraged in the marketing communication. For example, is delivery of communications strategy, then value can be created newspaper content over a mobile device still a “print for the consumer and this channel should be medium” (Russell and Lane, 2002)? In posing this utilized. Campaigns that do not build on any of question, the authors point out that media planners these unique characteristics may be better suited to must look less at the distribution system for their other media. For example, when the internet was messages and concentrate more on the value created first introduced, some companies created web sites in communication effectiveness. If the traditional that were nothing more than a digital version of distinctions are no longer present, how will media their brochures or annual reports. Communication budgets be allocated? This area is ripe with research that ignores the key characteristics of the medium possibilities and mobile marketing would be an that carries it will fail to create value. But as with all excellent test of new models. media strategies, maximum impact may be achieved by using multiple channels. As powerful as this new Furthermore, Yunos, Gao and Shim (2003) point out medium appears, mobile communications can that wireless advertisers will face several technical achieve synergies through integration with other challenges such as the small screen size of the media as well. devices, inconsistent formatting in the ads, slow download times and varying technological For example, the Adidas case study (see Sultan and standards. Inconsistent standards for marketing Rohm, 2005) points out the risks of not integrating through the various mobile carriers globally and more traditional mass media with mobile in the especially within the US will also be a barrier to communications strategy. Although the campaign including mobile media in the IMC strategy. involved considerable creativity and interactivity Guidelines are needed for both marketers and using both mobile and internet-based technologies, intermediaries. the results did not meet expectations. On the mobile More research is needed as well on minimizing the side, the number of wallpaper downloads and viral potential disadvantages of mobile media. Several of activities were minimal. On the internet side, visits the studies reviewed above, point out the potential to the website were fewer than expected. The negative responses to mobile marketing campaign never got off the ground because too few communications. There are fears of spam and consumers knew about it. There was no budget for invasion of privacy. These potential negative TV or other traditional media. As Sultan and Rohm responses may interfere with the creation of value suggest, “…although mobile marketing might be a (both for the consumer and the marketer) in the more effective medium in terms of consumer mobile channel if they are not addressed. involvement, interaction and response, it could also be a less efficient medium with respect to audience Finally, as with any form of marketing reach (p. 89). In other words, this campaign communication, no amount of creativity or suffered from a failure to consider the unique promotional strategy can make up for failing to contributions of each media channel towards the understand and meet the consumer’s needs. The overall IMC goals. creative and technological potential of mobile

23 Innovative Marketing, Volume 6, Issue 2, 2010 marketing communications could easily serve to all new strategy initiatives, an iterative process of divert managerial attention away from the basics. research, theory development, and practice will Overzealous use of the ubiquitous nature of mobile ultimately enable mobile marketing communications could turn good communications into bad. As with to reach its full potential.

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